Interactive Brokers Options Trading Tutorial
The following pricing details are for IBKR Pro only.
To open an account with Interactive Brokers there is no minimum deposit ($110,000 min required for portfolio margin). If the trader does not spend at least $10 in commissions per month, they will be charged the difference. Additionally, there is a fee of $10 charged for real-time quotes each month ("US Securities and Futures Value Bundle") which is waived if at least $30 in commissions is spent.
Interactive Brokers is one of few in the industry that does not receive payment for order flow for equity trades, a known factor in order execution quality.
Stock Trades - Standard fixed pricing US stock trades run $.005 per share with a minimum of $1.00 and a maximum of 0.5% of trade value.
Several examples of how this commission structure is calculated are seen below:
- 100 shares of a $50 per share stock = 100 x .005 = $1.00 (this trade meets the minimum of $1.00)
- 1,000 shares of a $50 per share stock = 1000 x .005 = $5.00 (this trade price is the cost of 1,000 shares *.005 per share)
- 1,000 Shares @ USD 0.50 Share Price = $2.50 (this trade meets the maximum commission of .5% of total trade value, or .5% x $500, and thus does not cost $5.00)
For traders who are comfortable managing their own routes to minimize exchange costs or maximize exchange rebates, Interactive Brokers also offers a tiered pricing structure.
Rates start at $0.0035 per share when trading less than 300,000 shares per month and drop as low as $.0005 per share when trading over 100,000,000 shares each month.
Broker assisted trades are offered at $.01 per share with a minimum order price of $100.
Options Trades - For options trades, the standard rates are also tiered.
For an investor trading less than 10,000 contracts per month having their trades routed using the Interactive Brokers Smart Routed system (default), there are three tiers based on the price of the contract itself.
These tiers are broken down below (exchange and regulatory fees may also apply):
- Contract price less greater than $.10 = $.70 per contract with a $1.00 minimum and no maximum.
- Contract price less than $.10 but greater than $.05 = $.50 per contract with a $1.00 minimum and no maximum.
- Contract price less than $.05 = $.25 per contract with a $1.00 minimum and no maximum.
And for options traders who want to directly route their trade options orders, they can do so at a price of $1.00 per contract.
Mutual Funds - Only no load Mutual funds are supported.
Each trade costs $14.95.
Initial purchase must be at least $3,000.
Other Investments - Interactive Brokers also offers futures trading (all types), forex, bonds, and CFDs.